Question

$\huge\mathcal{Question}$

Betsy Parker wants to buy a house in next 10 years and decides to have a SMART goal of having $40,000 as down payment. With the investment that gives interest rate of 5%, how much money she needs to set aside now?

➡ɴᴇᴇᴅ ǫᴜᴀʟɪᴛʏ.
➡ғᴜʟʟ ᴇxᴘʟᴀɴᴀᴛɪᴏɴ.
➡ɴᴏ sᴘᴀᴍ/ᴄᴏᴘʏ.
➡ᴏɴʟʏ sᴛᴀʀs ᴀɴsᴡᴇʀ.
​

Answer 1

Qᴜᴇsᴛɪᴏɴ :-

Betsy Parker wants to buy a house in next 10 years and decides to have a SMART goal of having $40,000 as down payment. With the investment that gives interest rate of 5%, how much money she needs to set aside now?

Gɪᴠᴇɴ :-

P = 40,000

T = 10 years.

R = 5%

Tᴏ Fɪɴᴅ :-

How much money she needs to set aside noᴡ.

Sᴏʟᴜᴛɪᴏɴ :-

▪️For the first year,

$\sf\large\blue{SI = \frac{P \times R \times T}{100} }SI=$

100

P×R×T

$\sf\large\blue{SI = \frac{40000\times 10 \times 1}{100} }SI= 100$

40000×10×1

$\sf\large\blue{SI = Rs.4000 }$SI=Rs.4000

$\sf\large\blue{Amount = 40000 + 4000 = 44000 }Amount=40000+4000=44000$

▪️For the second year,

P = 44000

T = 1 year

R = 10℅..